Advocate claims widespread fraud in resolution process, challenges loan legitimacy
The National Company Law Tribunal (NCLT) in Kolkata continues to unravel complex accusations in the INCAB case.
JAMSHEDPUR – The NCLT Kolkata bench, led by Members Arvind Devanathan and Bidisa Banerjee, heard startling allegations of fraud and mismanagement in the INCAB case today.
Advocate Akhilesh Srivastava presented a forceful argument, questioning the validity of the current resolution process for the defunct company.
Srivastava contended that INCAB’s financial loans, dormant since 1996, should have been considered void due to lack of recovery attempts by creditors.
He accused several companies of conspiring with the Resolution Professional to wrongfully obtain a liquidation order in February 2020.
The advocate highlighted alleged irregularities in asset transactions, arguing that private entities cannot legally acquire non-performing assets under existing regulations.
Srivastava referenced a 2014 State Bank of India statement, suggesting a settlement of Rs. 21.63 crores had been reached for outstanding loans.
The legality of subsequent loan transfers in 2006, 2007, and 2016 was called into question, given the loans’ alleged expiration in 1996.
Universal Leader’s claims of loan repayment and asset sales were disputed, with Srivastava arguing such liabilities would have lapsed after three years.
Accusations were leveled against RR Cables and Pegasus for allegedly attempting to seize INCAB’s land without genuine revival plans.
Tata Steel faced criticism for purportedly using legal maneuvers to acquire INCAB’s property, a matter previously contested in the Supreme Court.
Resolution Professional Pankaj Tibrewal was accused of mismanaging over Rs. 5 crore, with calls for his removal and replacement.
Advocates Akash Sharma and Manjari Sinha supported Srivastava’s arguments on behalf of INCAB employees.
The NCLT’s decision in this case could have far-reaching implications for corporate resolution processes and asset management in India.
As deliberations continue, the future of INCAB hangs in the balance amid these serious allegations of systemic fraud and mismanagement.
